PLA needs US$20bn to create its own carrier battle group: report

[Windsorhai]

PLA needs US$20bn to create its own carrier battle group: report
Staff Reporter 2013-09-29 16:23

The Liaoning, China's first aircraft carrier, returns to its home port of Dalian. (Photo/CNS)

The state-run China Shipbuilding Industry Corporation will have to spend at least US$20 billion to design and develop vessels for the PLA Navy's first carrier battle group, according to the Toyko-based Yomiuri Shimbun.

With the task of building 80% of the PLA Navy's ships, the CSIC has already begun to raise funds through the stock market. However, the company has only managed to raise under US$8.5 billion as its strong ties to China's military development, limits the type of investors allowed to participate.

Most of the funds collected so far are from other state-run businesses, but the CSIC is considering plans to sell its stock to the general public as well. While more money can be raised in the open market, it is also a way to call on the public to support their country's military efforts, insiders said.

The CSIC is also looking to raise funds to take over all major military projects assigned to affiliated company Dalian Shipbuilding Industry since the latter is the only company with experience to refit the Liaoning, China's first aircraft carrier. According to reports, China will build at least three aircaft carriers in the future, and the company plans to build one or more aircraft carriers over the next five to 10 years

Since aircraft carriers alone cannot make China a new maritime power, the CSIC will also build more destroyers, frigates and landing carriers which are necessary for the PLA Navy to form its first carrier battle group, with the Liaoning serving as its flagship. This plan was confirmed by the official website of PLA Navy on Sept. 24, the paper said.

During an event to celebrate the 64th anniversary of the PLA Navy this April, Duan Zhaoxian, vice chief of staff of the PLA Navy, stated that the position of China's carrier formation or carrier battle group will not surpass the country's three major fleets — which includes the North Sea, East Sea and South Sea fleets.